UPI Transactions Drop in September Despite Strong Yearly Growth

Unified Payments Interface (UPI) transactions recorded a slight decline in September 2026 compared with the previous month, according to data released by the Reserve Bank of India (RBI).

UPI processed 24.07 billion transactions in September, down 1.8% from 24.51 billion transactions in August. The total value of UPI transactions also declined by 1.5% to ₹29.37 lakh crore, compared with ₹29.82 lakh crore in August.

The decline in total monthly transactions was partly due to September having 30 days, while August had 31 days. On a daily average basis, UPI transactions actually increased. The system processed around 802 million transactions per day in September, compared with about 791 million in August.

Despite the month-on-month decline, UPI continued to show strong growth compared with last year. Transaction volume increased by about 23% year-on-year, while the transaction value rose around 18% in September 2026.

The September figures come at a time when new Merchant Discount Rate (MDR) rules for certain high-value UPI transactions are set to take effect from October 15. The new framework has also led to discussions among merchants and businesses about the cost of accepting certain UPI payments.

Overall, while UPI transactions were lower than August on a monthly basis, the rise in daily average usage and strong year-on-year growth show that digital payments remain widely used across India.